What is blockchain escrow?

Blockchain escrow, sometimes called “decentralized escrow”, is a specific escrow system that uses a blockchain network to confirm and act on the given instructions in code instead of a human. Because a blockchain is a network of nodes, it is fair to say that a blockchain escrow uses nodes as a substitute for bank clerks. Sounds complicated?

What are the benefits of blockchain escrow?

Efficiency – Blockchain eliminates the need for third parties, which in turn helps to reduce the transaction cost and enhances service efficiency. Cost – Transaction fees need to be paid to deploy and execute the escrow smart contract on public blockchains.

How escrow can be used for payment conditions based on on-chain data?

If the payment conditions depend only on on-chain data, then delegated call can be made to the escrow contract to inform the delivery of the product/service. If the payment conditions depend on external data like the shipment of a product, the oracle pattern can be used to provide desired data to the escrow.